INOX Leisure Limited Investor Presentation January 2014 INOX – a diversified business group with market leadership Listed on BSE and NSE Listed on BSE and NSE 50:50 joint venture with Privately held 75% subsidiary of GFL 100% subsidiary of GFL Air Products and 49% subsidiary of GFL India’s largest India’s largest cryogenic Fully integrated wind Wind farm operator with Chemicals Inc(USA), a manufacturer of engineering company, turbine manufacturer around 200 MW of India’s largest Fortune 500 Company amongst the world’s with state of the art operational wind farms, integrated multiplex refrigerants, largest facilities for nacelles, with another 100 MW chain chloromethanes & India’s largest industrial blades, towers, and under construction, PTFE gas manufacturer – Manufacturing facilities Currently operates 76 around 40 plants across hubs across 4 different Carbon credit revenues in India, US, Canada, properties in 41 cities the country States comprising of 296 utilized to build strong Brazil and China India’s fastest growing screens and 80,848 businesses and amongst largest wind farm solutions seats Subsidiaries in 3 provider countries, JVs in 2 80 year track record of ethical business growth Diversified, professionally managed business group 22 companies (including two listed, 7 international subsidiaries, and 5 joint ventures – of which 3 international) 10 different businesses Gross block over Rs 7,000 crores, Gross revenues over Rs 5,000 crores More than 100 business units across India, employing more than 10,000 people Market leadership across almost all businesses 2 Indian Movie Exhibition Business . Organized retail growing at rapid rate of 26.8% CAGR o As of 2012, only 8% of the $518 bn retail market in India was organized Organized Retail o Organized retail expected to grow even faster by 2015 crossing over 10% share of total retail on Overdrive o Favorable regulatory environment – 51% FDI permitted in multi brand retail o Real Estate sector more organized – huge development in malls and commercial properties .Large Malls need anchor tenants – strong preference for Multiplexes Large Movie . ~ 1000 movies released per annum . ~ 5 billion tickets sold annually Industry . Quality content across genres and languages . Domestic theatrical accounts for 76% of total film industry revenues in 2012 . Box Office collections estimated to grow at 10.8% CAGR from Rs 85 bn in 2012 to Rs 142 bn in 2017 Vibrant . Multiple drivers for box office growth – o Digital Cinema enabled wide releases Larger box office collections Film Distributors Domestic Box enjoying large profits Larger investments Quality content pipeline Office o Younger demographics and increasing discretionary spends esp. on entertainment o Limited alternative entertainment options o Movie going is a social activity Underpenetrated . India is a severely under-served market with low screen density (8 screens / mn vs. 117 in US) . Multiplex screens account for just 15% of total screens multiplex market . Latent demand in several markets for quality movie going experience Source: FICCI KPMG Report, IRIS India Retail Report 2013,Research Reports Immense opportunity for large, organized players 3 India’s Largest Integrated Multiplex Chain HARYANA 3 Properties | 10 Screens S 14 States 41 Cities MADHYA PRADESH 3 Properties | 11 Screens 76 Multiplexes UTTAR PRADESH 2 Properties | 8 Screens 296 Screens JHARKHAND 1 Properties | 4 Screens 80848 Seats RAJASTHAN 7 Properties |22 Screens 45 million patrons * WEST BENGAL GUJARAT 13 Properties |49 Screens 6 Properties |25 Screens ORISSA 1 Properties |3 Screens MAHARASTRA CHHATTISGARH 19 Properties |76 Screens 2 Properties | 8 Screens ANDHRA PRADESH 7 Properties | 31 Screens GOA 1 Properties | 4 Screens KARNATAKA 8 Properties | 31 Screens TAMILNADU 3 Properties | 14 Screens * FY14 Estimate 4 Key Value Drivers Largest Integrated Multiplex Chain in India • Track record of aggressive expansion • Pan India Presence • Strong project pipeline Unmatched Consumer Experience • Unmatched service and ambience • State of the art technology • Premium multiplex properties • Strong content pipeline Robust Operating Performance • Rising footfalls • High ticket prices • Highly profitable F&B service • Focus on other operating income • By leveraging on brand partnerships Fillips to profitability •Owned Properties •E-Tax Exemption 5 Track Record of Aggressive Expansion Acquisition 74 Prop. 76 Prop. 285 Screens 296 Screens of Fame 68 Prop. India 63 Prop. 257 Screens 239 Screens Acquisition of 89 Cinemas 32 Prop. 26 Prop. 119 Screens IPO 22 Prop. 91 Screens 76 Screens 14 Prop. 9 Prop. 51 Screens 6 Prop. 35 Screens 2 Prop. 3 Prop. 25 Screens 8 Screens 12 Screens Includes 6 Managed Properties with 20 screens FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Current PUNE KOLKATA KOLKATA BANGALORE DARJEELING BHARUCH FARIDABAD HYDERABAD VIZAG (CMR) LILUAH HYDERABAD SURAT VODADARA (Elgin Road) (Salt Lake) (Magrath Road) KOTA DURGAPUR NAGPUR SILIGURI BANGALORE SILIGURI NAVI MUMBAI VIZIANAGARAM GOA JAIPUR NAGPUR JAIPUR (Jaswant Tuli) KOLKATA (Mantri Sq) (CC) PUNE KALKA MUMBAI (Vaishali Ngr) (Wardhaman Nagar) (Crystal Palm) BANGALORE (Rajarhat) BELGAUM Vijaywada (Amanora) RAIPUR (Nariman Point) INDORE CHENNAI LUCKNOW (Swagath) INDORE JAIPUR (LEPL) BHUBANESWAR Jaipur (Sapna Sangeeta) JAIPUR RAIPUR BURDWAN (Central Mall) (Raja Park) ------------ UDAIPUR Madurai (Bani Park) KOLKATA THANE KANPUR 2 FAME BHOPAL (Swabhumi) VIZAG BANGALORE Properties VIJAYWADA (Beach Road) (J.P.Nagar) -------------------- 25 FAME Properties On average, added two properties every quarter over the last decade 6 Pan India Presence Cities Properties East, 9 East, 17 West, 16 West, 29 North, 8 North, 12 South, 8 South, 18 Screens Seats East, 64 East, 17388 West, 116 West, 33817 North, 40 North, 10811 South, 76 South, 18832 Well distributed mix of properties 7 Strong Project Pipeline Sl No Property / City Location No of screens Est. Launch 1 Surat Dumas Road 8 11th Jul 2013 2 Vizianagaram Bochupeta 3 29th Jul 2013 YTD FY14 3 *Kalka Sector 2 3 17th Sep 2013 4 *Raipur Sadunalla, Vidhan Sabha Road 4 5th Oct 2013 5 Jaipur Ajmer Road 3 23rd Dec 2013 6 Madurai Chockikulam, Gokhale Road , 5 24th Dec 2013 Total screens Launched Till Date 26 1 Kolkatta Syed Amer Ali Avenue 6 Q4 FY14 Q4 FY14 2 Vizag Jagadamba Centre 5 Q4FY14 3 Greater Noida Gautam Budh Nagar 5 Q4 FY14 4 Jamnagar Saat Rasta,Khambhaliya Main road 5 Q4 FY14 5 Jalgoan Station Road 4 Q4 FY14 Total Screens 25 1 Manipal Syndicate circle 3 Q1 FY15 2 Gurgaon Old Railway Road 3 Q1 FY15 3 Faridabad Sector 20 ,Delhi- Mathura Road 3 Q1 FY15 4 Lucknow Mohanlal Ganj, Rae Bareli Road 4 Q1 FY15 5 *Panchkula Sector 5 3 Q2 FY15 6 Vijayawada Canal Guest House, MG Road 3 Q2 FY15 7 Ajmer Panchsheel Nagar 3 Q2 FY15 8 Kurnool Bellary Road 3 Q2 FY15 FY15 9 Pune NIBM Ext Road 6 Q3 FY15 10 Thrissur Guruvayu Road 6 Q3 FY15 11 Kota DCM Road 4 Q3 FY15 12 *Bhiwadi Alwar Bypass 3 Q3 FY15 13 Jammu Nawabad 3 Q3 FY15 14 Bangalore Yelahankha, Bellary road 5 Q4 FY15 15 Goa Porvorium 4 Q4 FY15 16 Mangalore Kulshekar 8 Q4 FY15 17 Cuttack Town Hall Road 4 Q4 FY15 Total screens 68 *Management Properties 8 Unmatched Service and Ambience . World class ambience Ambience . Emphasis on safety, comfort and convenience . Experienced Programming Team . Wide variety of movies catering to different genres and tastes Programming . Theatre management system installed in every unit allows flexibility in programming . Setup own high quality DCI Compliant 2K Digital Projection Systems across locations to ensure world class cinematic experience Video Quality . High definition picture quality . 3D enabled . High frame rate (HFR) ready (can go up to 60 fps) . Early adopters of Dolby ATMOS sound technology Audio Quality . Excellent acoustic systems . Distortion free sound 9 State of the Art Technology . First multiplex chain in the country to co-develop an Integrated ERP software . Focus on ensuring transparency to all business partners (regulatory agencies and distributors) . End of day data availability allows for performance analysis and better management control . Automated DCR (Daily Collection Reports) sent to regulatory agencies and distributors - no manual intervention for report generation and hence no room for errors, complete transparency . Setup NOC in Mumbai that enables management team to continuously monitor, control and report information on digital systems across the country . Real time programming changes . Dynamic on screen ad scheduling from NOC 10 Premium Multiplex Properties VADODARA PUNE PUNE AMANORA KOLKATA HYDERABAD MUMBAI 11 Strong Content Pipeline 07-Feb-14 HASEE TOH PHASEE HINDI SIDHARTH MALHOTRA, PARINEETI CHOPRA, ADAH SHARMA 07-Feb-14 HEARTLESS HINDI ADHYAYAN SUMAN, OM PURI, DEEPTI NAVAL 07-Feb-14 LONE SURVIVOR ENG MARK WAHLBERG, BEN FOSTER, ERIC BANA 07-Feb-14 SAVING MR BANKS ENG TOM HANKS 07-Feb-14 THE LEGO MOVIE (3D) ENG CHANNING TATUM, COBIE SMOULDERS, JONAH HILL, ELIZABETH BANKS 14-Feb-14 GUNDAY HINDI RANVEER SINGH, ARJUN KAPOOR 14-Feb-14 ENDLESS LOVE ENG ROBERT PATRICK, JOELY RICHARDSON, BRUCE GREENWOOD 14-Feb-14 THAT AWKARD MOMENT ENG ZAC EFFRON, MILES TELLER, EMOGEN POOTS 14-Feb-14 WINTERS TALE ENG JENNIFER CONNELLY, WILL SMITH, COLIN FARRELL, RUSSELL CROWE 14-Feb-14 HER ENG JOAQUIN PHOENIX, AMY ADAMS, SCARLETT JOHANSSON 14-Feb-14 ROBO COP ENG JAY BARUCHEL, ABBIE CORNISH, GARY OLDMAN, SAMUEL L JACKSON, MICHAEL KEATON 21-Feb-14 HIGHWAY HINDI RANDEEP HOODA, ALIA BHATT 21-Feb-14 DARR @ THE MALL HINDI JIMMY SHERGILL,